House of Representatives

Second Reading Speech

Mr Bradbury (Assistant Treasurer and Minister Assisting for Deregulation)

I move:

That this bill be now read a second time.

This bill amends the Income Tax (Managed Investment Trust Withholding Tax) Act 2008, the Income Tax Assessment Act 1997 and the Taxation Administration Act 1953 to provide a final withholding tax rate of 10 per cent on fund payments from eligible Clean Building Managed Investment Trusts (MITs) made to foreign residents in information exchange countries.

For these amendments to apply, the managed investment trust must only invest in new energy efficient office, hotel and retail buildings that commenced construction on or after 1 July 2012. These trusts may also hold limited assets incidental to these buildings such as car parking facilities, telecommunications infrastructure or advertising billboards.

To be treated as an energy efficient building, a building must obtain and maintain either a 5-star Green Star rating or a 5.5 star National Australian Built Environment Rating System rating.

This criteria will be reviewed after three years to ensure that the measure continues to apply to buildings that are above the average level of energy efficiency.

Full details of the measures in this bill are contained in the explanatory memorandum.

Debate adjourned.